Analysts expect merged AMR to earn close to $3 billion in 2014
Airline analysts Jamie Baker and Mark Streeter of J.P. Morgan released a revised report on how they see AMR performing in coming years after the American Airlines-US Airways merger. Generally, they see good things.
Their model projects that AMR will have pro forma net income of $2.35 billion in 2013 and $2.90 billion in 2014.
They estimate that earnings before interest, depreciation, taxes, depreciation, amortization and rents (EBITDAR) will reach $6.0 billion in 2013 and $6.8 billion in 2014. EBITDAR margins would be 14.9 percent in 2013 and 16.1 percent in 2014, ahead of their estimates for Delta Air Lines and United Airlines in those years.
One thing that will help AMR’s bottom line is that the unions negotiated away profit sharing, the elimination of which he estimated added $300 million to $450 million in EBITDAR for AMR. In addition, the new American’s pilot costs will be lower than Delta’s and United’s until 2016
Airline analysts Jamie Baker and Mark Streeter of J.P. Morgan released a revised report on how they see AMR performing in coming years after the American Airlines-US Airways merger. Generally, they see good things.
Their model projects that AMR will have pro forma net income of $2.35 billion in 2013 and $2.90 billion in 2014.
They estimate that earnings before interest, depreciation, taxes, depreciation, amortization and rents (EBITDAR) will reach $6.0 billion in 2013 and $6.8 billion in 2014. EBITDAR margins would be 14.9 percent in 2013 and 16.1 percent in 2014, ahead of their estimates for Delta Air Lines and United Airlines in those years.
One thing that will help AMR’s bottom line is that the unions negotiated away profit sharing, the elimination of which he estimated added $300 million to $450 million in EBITDAR for AMR. In addition, the new American’s pilot costs will be lower than Delta’s and United’s until 2016